Plug Power Inc. (Plug Power (PLUG)) shares are having a good day. The hydrogen fuel cell company reported second-quarter results after Monday's close that came in better than Wall Street expected, and investors are rewarding the stock with a solid gain.
Revenue for the quarter came in at $178.30 million, up 9% from the first quarter and ahead of the $169.41 million analysts were looking for. The company also posted an adjusted loss of 7 cents per share, which is narrower than the 8-cent loss that was expected. Not a profit yet, but moving in the right direction.
Perhaps the most striking number is the gross margin. Plug Power hit breakeven on gross margin, which is a huge leap from the negative 31% it reported in the second quarter of 2025 and the negative 13% in the first quarter of 2026. That's the kind of improvement that gets people's attention.
CEO Jose Luis Crespo framed it as evidence of a broader transformation: "Our second quarter results demonstrate that Plug is executing its transformation into a stronger, more efficient and profitable company."
Raising the Bar for 2026
Looking ahead, management raised its full-year 2026 revenue growth outlook to between 15% and 16% year over year. They also expect to achieve positive EBITDAS in the fourth quarter of 2026. For a company that has been burning cash for years, that's a meaningful milestone to aim for.
Crespo also pointed to growing momentum in the electrolyzer business: "Our electrolyzer pipeline continues to expand, and we see an increasing conversion rate."
What Analysts Are Saying
The stock carries a Hold consensus rating with an average price target of $3.22. But recent analyst moves show a split in opinion:
- HC Wainwright & Co.: Buy, maintains $7.00 forecast (Aug. 11)
- Susquehanna: Neutral, lowers to $2.50 (July 10)
- Morgan Stanley: Underweight, raises to $1.65 (July 9)
That's a wide range of views, from $1.65 to $7.00, which tells you how uncertain the outlook is for hydrogen as a business.
ETF Exposure Adds Fuel
Plug Power is also a significant holding in several clean-energy and hydrogen-focused ETFs, which can amplify moves in the stock. The Global X Hydrogen ETF (Global X Hydrogen ETF (HYDR)) has a 10.66% weighting in Plug Power, the Direxion Hydrogen ETF (Direxion Hydrogen ETF (HJEN)) has a 6.90% weighting, and the iShares Global Clean Energy ETF (iShares Global Clean Energy ETF (ICLN)) has a 2.84% weighting.
That means when money flows into or out of these funds, Plug Power shares can feel the ripple effects. It's an extra layer of volatility that investors should keep in mind.
PLUG Price Action: Plug Power shares were trading up 17.06% at $2.465 at the time of publication on Tuesday.
